Norway sovereign wealth fund CEO warns of ‘rocky ride ahead’
OSLO (Reuters) – Norway’s $1.2 trillion sovereign wealth fund, the world’s largest, expects troublesome market circumstances within the time to return, affected by geopolitical occasions and inflation, its chief government mentioned on Tuesday.
Inflation, already on the rise earlier than the struggle in Ukraine, has continued to extend, whereas rates of interest are nonetheless very low and share costs for the time being stay excessive, he mentioned.
“The geopolitical penalties of the struggle are troublesome to foretell, however we in all probability face the best adjustments for 30 years,” Nicolai Tangen mentioned in ready remarks revealed forward of his testifying in entrance of parliament’s finance committee.
“There’s little doubt that rising frictions between superpowers and a reversal of globalisation will have an effect on the markets,” he added.
The Norwegian fund, which invests all its property in overseas shares, bonds, actual property and renewable vitality initiatives, has “nowhere to cover” and should handle the danger that comes with publicity to world markets, he added.
“All this taken collectively signifies that we’ve a rocky trip forward,” Tangen mentioned.
Market worth of Norway’s wealth fund https://graphics.reuters.com/NORWAY-SWF/lgpdwajadvo/chart.png
($1 = 9.4587 Norwegian crowns)
(Reporting by Gwladys Fouche, enhancing by Terje Solsvik)
